According to the Office for National Statistics the economy shrank by 0.3pc in the first quarter of 2012, more than expected.
The outlook for British business is not optimistic, as austerity policies and the developing Greek crisis are thought likely to hamper recovery in the second half of the year.
What this means in practice is that companies will continue to keep a close eye on costs. Clients will refresh efforts to ensure that each pound spent is working hard. This may well include putting work out to tender to ensure a supplier is offering the best service and the best value for money.
The challenge for accountants in practice in this environment is not only to acquire new clients, but also to keep their existing ones. To achieve this aim, partners will need to get personal.